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5. Using your understanding of the nonprice determinants of supply and of demand, analyze each of the following market cases. Draw a graph showing what happens in each situation, indicate what happens to equilibrium price and quantity, and explain why, following this ex- ample: Market for gasoline: A hurricane hits the Gulf of Mexico, destroying many refineries that produce gasoline from crude oil.BASIC ECONOMIC ANALYSIS Price P2 P1 D Q2 Q1 Quantity of gasoline The hurricane reduces the number of producers, which shifts the supply curve back (to the left) from S, to S,; price rises from P, to P, and quantity falls from Q, to Q,. a. Market for bananas: New health reports indicate that people can gain important health benefits from eating bananas. b. Market for shoes: A new technology for shoe making means that shoes can be made at a lower cost per pair. C. Market for Internet design services: Several thousand new graduates of design schools enter the market, ready to supply their services. d. Market for expensive meals: A booming economy raises the incomes of many households. e. Market for grapes from California: A freeze in Chile, usually a major world provider of fresh fruit, raises the price of Chilean grapes. f . Market for salsa dance lessons: The only nightclub featuring salsa music triples its entrance fee. 9. Market for bottled water: A rumor circulates that the price of bottled water is about to triple. (Think only about the demand side.) . Market for Internet design services: Several thousand new graduates of design schools enter the market, ready to supply their services, at the same time that many firms want to create new Web sites. Market for bananas: New health reports indicate that people can gain important health benefits from eating bananas, while at the same time an infestation of insects reduces the banana harvest in several areas